50% of HDTVs Shipped in 2012 will be Internet Ready

New market research from Parks Associates finds the percentages of U.S. smart-TV owners who use this Internet-connected device to watch online video increased by over 30% in six months.

"The percentage of smart-TV owners connecting the device to the Internet has steadily increased, from approximately 40% in 2010 to 56% today," said Pietro Macchiarella, Research Analyst, Parks Associates. "This device, when connected, offers a toehold to a variety of players, including broadcasters, over-the-top video providers, and pay-TV providers."

The new research, Smart TVs in a Pay-TV World, shows the number of Internet-connectable TVs shipped will jump from less than 1% in 2008 to over 45% in 2012. The report also shows:

75% of U.S. smart-TV owners who connect their set to the Internet watch on-demand online movies at least monthly, versus 57% in 2011

71% watch online TV shows at least monthly, versus 51% in 2011

On a near-daily basis, 30% watch movies and 32% watch TV shows

The report analyzes the implications of this increased penetration of smart TVs for manufacturers, content owners, and pay-TV providers.

"Smart TVs have the potential to be both a threat and an opportunity for pay-TV providers," said Brett Sappington, Director, Research, Parks Associates. "Smart TVs provide consumers another way to access over-the-top services like Netflix on the TV, providing a new distribution channel that all players can leverage to deliver content to consumers. However, by integrating the smart TV into their distribution model, pay-TV providers can leverage their strengths in content costs, customer relationships, bundling, and other areas to play a more substantial role in OTT. In addition, pay-TV providers can potentially use smart TVs to lower subscriber CPE costs, an important consideration in a highly competitive market."

Parks Associates Smart TVs in a Pay-TV World analyzes the technology and business implications for delivering managed and over-the-top video services into a smart TV. It provides an overview of content delivery models, examines the role of pay-TV operators, and provides global forecasts.

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